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Friday, January 19, 2007

Working with VCs For Your Start-Up Business

Last month, while browsing Yedda, I came across a question about venture capitalists and start-ups.
What is the right time to incorporate a vc in the start up?
I couldn't resist providing the Yedda user with some meaty links to help him out. Here's what I wrote...

There is no "right time." It depends on your business and well, you! Everyone has different timing. Make sure you have a rock solid business plan before you approach a VC. Many VCs look at your track record, either as a previous employee or business owner, but product or service potential and projected return on investment is a big factor. Some VCs specialize in start-ups, and some business owners get funding at the onset, so your question about the timing may be moot.

If you'd like to read about a start-up entrepreneur who attracted VCs early in the game, check out this blog article.
Ramit Sethi, co-founder & VP of Marketing for PBwiki, presents Friday Entrepreneur: Joyce Park, Renkoo posted at I Will Teach You To Be Rich. Ramit interviews Joyce, co-founder and CTO of Renkoo, about her decision to fund her start-up "almost immediately ($3 million in VC)."

There are also some step-by-step articles on eHow.com about getting money from VCs.

There's a nice article on CNNMoney titled What a VC wants to see in you, that talks about wooing "even the fussiest venture capitalists." And don't forget to read "Top Ten Lies of Venture Capitalists" by Guy Kawasaki, to help you put things in perspective.

Meanwhile, if you're interested in getting additional help with business planning, reading case studies, and finding other entrepreneurs like yourself, check out JumpUp. JumpUp is a new site by Intuit for small business owners and start-up entrepreneurs. I've added several links under "My Saved Bookmarks" for help in starting a business, so start with my Profile on Kim's JumpUp Page. By the way, just so you know, I work for Intuit...

Good luck!

~ Kim

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